KOTA KINABALU, Nov 4 — The government has been asked to explain the whereabouts of a RM16 million bank guarantee meant for the troubled Triconic Tower project in Penampang.

Parti Warisan Sabah (Warisan) vice president Datuk Junz Wong said according to the buyers, a meeting between them and the State Ministry of Local Government and Housing (KKTP) was held on September 2, when the ministry had revealed that the buyers’ five percent performance bond – basically a guarantee against the failure of the contractor to complete the project accordingly – has not been renewed since 2020 and had lapsed, and the money was consequently released.

Junz said this complicates any efforts to persuade White Knights from coming in to salvage the project, as KKTP during the meeting not only did not disclose where the money went, but also that any potential White Knights would have to fork up the missing five percent should they wish to pursue rescuing the project, or if they are not willing to pay for it, then the onus would fall on the buyers to top up the RM16 million performance bond, which he claims violates the law and is against what is stipulated in the housing enactments.

"Why would KKTP admit that the guarantee has expired and they allowed it to happen? The local government has clearly breached its statutory duty to ensure that the guarantee pursuant to the enactment is properly renewed and taken care of.

"It is ridiculous to say that the White Knights will replace the guarantee. The guarantee is supposed to be used for such dire situations.

"We need the government and ministries to come clean on what has happened to the RM16 million performance bond. It has been four years already. Where did the money go to and how can such an incident occur when there are laws in place?

"This is very worrying as if true, then it means that it can happen to any development project in Kota Kinabalu, further decreasing buyers’ already low confidence,” he told a press conference at the Warisan Kota Kinabalu office here today.

Junz said also during the meeting, the project’s former directors had offered the buyers a compensation proposal, but it was rejected by the offerees as they claimed that it was not sincere from the other side, and they are now urging the government to also declare the Triconic Tower project abandoned.

"The buyers are demanding that the Triconic Tower be declared as abandoned so that any White Knights can come in to save the project.

"If the PacifiCity project can be declared abandoned, then why not this one? Does it have anything to do with the five percent performance bond issue?” he said.

Junz also raised concerns on phase three of an incomplete housing development project in Penampang.

Junz said one of the buyers had been issued an Occupational Certificate (OC) for his house there in December last year despite the project not actually completed, incurring him and the other buyers to pay monthly loans to the bank even though they did not even have certain basic necessities such as toilet bowls, floor tiles and doors installed on their properties yet.

"When the buyer complained to the bank on why they fully released the money and why the OC was issued even though the project has not been completed, he was told that the bank only did so after being given the necessary documents from the Penampang District Council,” he said.

Junz said the project was only "completed” in March this year after the buyer complained to KKTP, despite the development of several houses in the housing area still not concluded.

He said the residents had also apparently been pressured into signing lopsided penalty reduction documents by the developers for their compensation, with the company citing financial difficulties as the reason for their discount proposals.

"And what is more concerning, the same developer, which is a Peninsular-based company, is building a new phase four housing project located right next to this one.

"I don’t understand how the PDC can allow such a thing to happen,” he said.

Also present at the press conference was Warisan Kota Kinabalu secretary Loi Kok Liang. — The Borneo Post